When the World Health Organization declared COVID-19 a pandemic in March 2020, the impact on travel and tourism was universal. Over the ensuing months, hotel chains and air carriers struggled under the weight of lockdowns, mask mandates and social distancing. But those same measures sparked an early recovery for many businesses in the short-term rental (STR) sector. People desperate for some fun and a change of scenery flocked to vacation rentals, where they could escape from home while remaining isolated. Compared to pre-pandemic travelers, however, these guests had very different preferences and booking behaviors.
Lodgify analyzed 5.69 million vacation rental bookings from 2019 to 2024 to understand how the pandemic impacted market dynamics, how those impacts have played out over the past five years, and what the data can tell us about the outlook for the near future.
Mid-2020 to mid-2021: got to get away
The early days of the pandemic were an uncertain time. Not only were most people’s lives turned upside down, but nobody knew how long the crisis would last. Travel plans were cancelled en masse, including 85% of short-term rental bookings in March and April 2020, according to data from Granicus.
It didn’t take long, however, for cabin fever to get people longing to travel again. Those fortunate enough to be working remotely realized they didn’t have to stay at home, and with most schools closed and students taking classes virtually, many families started looking for a temporary home away from home. By giving people their own space, room to work, and the cooking and cleaning amenities they needed to be self-sufficient, vacation rentals ticked all the boxes.
As people realized they could get away without necessarily putting their health or jobs at risk, STR occupancy experienced a mini-surge driven by impulse bookings. Our data shows that the percentage of vacation rental bookings made a week or less before check-in spiked in September 2020 to 41%, from an average of 32% in 2019. Meanwhile, the share of bookings made more than 30 days in advance decreased from 35% in 2019 to 34% in 2020.
A higher percentage of travelers may have been leaving less time between booking and check-in, but they were staying longer once they arrived. Average length of stay (ALOS) jumped from 3.41 days in 2019 to 4.39 days in 2020, reflecting the fact that many guests didn’t have to rush back home for work or school.
Another reason peak-pandemic travelers preferred STRs was that most hotel rooms lack kitchen amenities. Eating out still wasn’t an option in many places, and the cost of ordering takeout for every meal adds up quickly. As an alternative, according to our data, guests sought out vacation rentals that were fully equipped for cooking:
| Amenity | Occupancy rate — 2019 | Occupancy rate — 2020 |
| Refrigerator | 54.8% | 59.7% |
| Cooking utensils | 47.4% | 52.4% |
| Oven | 36.7% | 43.5% |
Reflecting both the increase in ALOS and guests’ desire to stay self-sufficient, the occupancy rate for properties with a washing machine also increased from 32% in 2019 to 38% in 2020.
Mid-2021 through Mid-2022: The Floodgates Open
With the arrival of vaccines, the recovery in the travel and tourism industry broadened and accelerated, as people started rebooking trips delayed due to the pandemic.
As uncertainty faded and the world started opening back up, travelers felt more confident about making long-term plans. In 2021, the share of last-minute bookings fell from 38% to 32%, while the percentage of guests booking more than 30 days out increased from 34% in 2020 to 40% in 2021. This trend continued through 2022, during which this booking window segment jumped to 44%.
While guests were reserving their stays further in advance, ALOS started trending downward as workplaces reopened and organizations reined in remote working. In 2021, our analysis shows that ALOS declined to 4.12 days in 2021 and 3.97 days in 2022. That was still well above the 2019 level of 3.41 days, but below the peak of 4.39 days in 2020.
Demand for “like-home” amenities like kitchen appliances and cooking utensils leveled off in 2021 and 2022, as travelers were happy to reacquaint themselves with bars, restaurants and the experience of dining out.
Mid-2023 through 2024: Inflation and Return-to-Office Drag on Travel
A perfect storm of rising costs, dwindling personal savings and high household debt eventually put the brakes on revenge travel. While a record 33% of U.S. households took a vacation in the summer of 2023, according to a Federal Reserve Bank of New York survey, much of that travel was financed with credit card debt as opposed to savings.
As personal financial pressures mounted, travelers appeared to be prioritizing flexibility and spontaneity. After jumping to 50.66 days in 2022 from a pre-pandemic level of 31.55 days, the average booking window dropped to 48.74 days in 2023 and 47.94 days in 2024. At the same time, the percentage of bookings made a week or less before check-in steadily climbed from 31% in 2022 to 33% in 2023 and 35% in 2024—suggesting that even amid tighter budgets and return-to-office constraints, many travelers were still making time to get away, just with shorter planning horizons.
Increased adoption of return-to-office (RTO) mandates during this period also made it harder for people to work from wherever they want and stay for as long as they like. This has contributed to a gradual decline in length-of-stay every year since 2020, with our data showing an ALOS of 3.68 days in 2024.
After remaining relatively flat from 2020 through 2022, our data shows that occupancy rates for STRs with amenities like a refrigerator or oven took off again in 2023 and 2024. For example, after increasing by only 1.5 percentage points over the previous three years, the occupancy rate for properties with a stove jumped by 5 percentage points from 2022 to 2023 and 6.5 percentage points from 2023 to 2024. The occupancy rate by amenity for other kitchen appliances followed a similar pattern. The spiking demand for those features may have been driven by the steep increase in costs since 2022 and other conditions causing consumers to cut back on discretionary spending.
2025 and beyond: Stabilization in a New Normal
High prices and RTO mandates continue to be headline news this year, while tariffs, geopolitical tensions and renewed talk of a recession in the U.S. weigh on both consumers and vacation rental hosts. For many U.S. hosts, the potential downturn is a real concern as they navigate shifting travel demand and rising operational costs.
Still, the future looks bright for STR businesses. One enduring impact of the pandemic is that it inspired lots of people to try new experiences, from gardening to baking to staying in a vacation rental. While people may be taking fewer trips, and for shorter periods of time, this increased awareness should inspire a higher percentage of them to choose STRs over hotels. Meanwhile, high inflation and interest rates have slowed supply growth, helping buoy revenue per available rental.
Travelers who find themselves subject to RTO rules and in a more precarious financial position may be more likely to book quick, last-minute getaways when the opportunity presents itself. According to our analysis, the share of bookings made a week or less prior to check-in has increased steadily over the past few years, reaching 35% last year. We believe this trend in booking behavior will continue, with the share of last-minute bookings rising back to the 2019 level of 36% this year.
Meanwhile, the percentage of bookings made more than 30 days out has decreased from a peak of 44% in 2022 to 41% in 2024. We expect that metric to continue downward in 2025, but to level off before settling back to the 2019 level of 35%. Ongoing elevated demand for STR stays means that a longer booking window is one pandemic impact we think will endure.
On the other hand, all of the headwinds we highlighted above are likely to continue dragging down ALOS. We anticipate ALOS dropping again in 2025 before settling back around the pre-pandemic level of 3.41 days next year.
Guest preferences are likely to continue reflecting increased price sensitivity, with travelers opting to cook for themselves to help them stay within their travel budget. For that reason, we believe vacation rentals with kitchen amenities will continue to see higher demand—another pandemic impact that will be with us for the foreseeable future.
Takeaways
Five years ago, the pandemic changed the way we lived, worked and traveled. Lodgify’s analysis of 5.68 million vacation rental bookings over a six-year period reveals that, while the pandemic had a deep impact on STR guests’ preferences and booking behaviors, most of those changes were not permanent. While vacation rental businesses can expect demand to remain high for cooking and cleaning amenities, we see ALOS and the share of bookings made last-minute returning to pre-pandemic levels in the near future.
About the author
Alex Vuilleumier has served as the Chief Operating Officer (COO) at Lodgify for the past eight years, before which he worked at Hotelscan and Expedia Group.
